350MW Munshiganj power plant gets nod

The proposed 350MW power plant on 350 acre farmland in Gazaria upazila of Munshiganj will finally see light of day as land acquisition issues dogging the project have been resolved in a meeting between Munshiganj district administration and Rural Power Company Limited (RPCL), the state-owned implementing agency of the project. Confirming the same to The Independent, Managing Director of RPCL Abdus Sabur said, “The formality of getting  official permission from the Ministry of Land is left and I hope it will be completed soon.”
The proposal to set up a power plant on farmland had created controversy, with the government already readying a draft bill to enact a law to prohibit use of crop land for other purposes. However, Abdus clarified that the chosen 350 acre abutting the river is mostly barren. “Some lands in the proposed area are one-crop land and the rest are barren. We hope that it will not affect industrial output,” he said. Abdus said the area has been chosen particularly because of its proximity to the river as that would facilitate transportation of coal along the river. Further, the government has plans to establish an industrial zone in the district and so, power generation is critical. With the project requiring an investment to the tune of $550 million, financing, according to Abdus, might happen in two ways. First - a government to government basis with China and second - an Export Credit Agency (ECA) basis. An ECA is a private or quasi-governmental institution that acts as an intermediary between national governments and exporters to issue export financing. The government plans to set up a series of coal-based power projects to generate 20,000MW of electricity by 2030. The Power Division has already set a 2,730MW electricity target for RPCL by the year 2030. RPCL was the first Independent Power Producer (IPP) of Bangladesh. It has started a new dimension in power generation in the private sector with 100% local mobilization of equity investment. The company has four power plants in Raozan of Chittagong, Kadda of Gazipur, Gazipur and Mymensingh with a total capacity of 437 MW.

350MW Munshiganj power plant gets nod

The proposed 350MW power plant on 350 acre farmland in Gazaria upazila of Munshiganj will finally see light of day as land acquisition issues dogging the project have been resolved in a meeting between Munshiganj district administration and Rural Power Company Limited (RPCL), the state-owned implementing agency of the project. Confirming the same to The Independent, Managing Director of RPCL Abdus Sabur said, The formality of getting official permission from the Ministry of Land is left and I hope it will be completed soon. The proposal to set up a power plant on farmland had created controversy, with the government already readying a draft bill to enact a law to prohibit use of crop land for other purposes. However, Abdus clarified that the chosen 350 acre abutting the river is mostly barren. Some lands in the proposed area are one-crop land and the rest are barren. We hope that it will not affect industrial output, he said. Abdus said the area has been chosen particularly because of its proximity to the river as that would facilitate transportation of coal along the river. Further, the government has plans to establish an industrial zone in the district and so, power generation is critical. With the project requiring an investment to the tune of $550 million, financing, according to Abdus, might happen in two ways. First - a government to government basis with China and second - an Export Credit Agency (ECA) basis. An ECA is a private or quasi-governmental institution that acts as an intermediary between national governments and exporters to issue export financing. The government plans to set up a series of coal-based power projects to generate 20,000MW of electricity by 2030. The Power Division has already set a 2,730MW electricity target for RPCL by the year 2030. RPCL was the first Independent Power Producer (IPP) of Bangladesh. It has started a new dimension in power generation in the private sector with 100% local mobilization of equity investment. The company has four power plants in Raozan of Chittagong, Kadda of Gazipur, Gazipur and Mymensingh with a total capacity of 437 MW.